VerticalResponse™, Self-Service Email Marketing Company Raises $505,000 In Series A Funding

SAN FRANCISCO, CA - August 14, 2001 - VerticalResponse, the emerging leader in self-service email marketing, today announced the completion of their series A funding round with $505,000. Investors include former XOOM.com, Publisher Bob Ellis, VP Paradysz Matera, Randy Robertson, current and former Learning Company executives, Greg Bestick, Ed Sattizahn, and John Hingley. With these funds, VerticalResponse™ has launched their first product, iBuilder™, that in just three months since its introduction boasts a large established customer base. The funds will also be used to expand and diversify the customer base while extending the product into new markets.

"Affordable, easy-to-use email marketing products that allow businesses of all sizes to take advantage of the power of direct email marketing are long overdue. We are very pleased with the confidence our experienced group of investors has shown in our revolutionary approach and strong business model," said Janine Popick, CEO "With sales above our projections, and our first round of funding complete, we are well on our way to reaching profitability."

More than 2500 companies have already registered to use iBuilder, VerticalResponse's self-service email marketing product launched in May of this year. Ten industry leading direct marketing and interactive agencies including 21st Century Marketing, have also adopted the product and are offering iBuilder to their current customers.

"Built on a solid business plan and financial discipline, VerticalResponse will thrive during a time of economic uncertainty," said Randy Robertson, VP, Paradysz Matera, "Guided by an experienced management team, VerticalResponse provides a sound product and financial picture."

"VerticalResponse's management team pioneered the development of direct marketing techniques on the web" said Bob Ellis, investor and advisor, "Now, they are making this technology available so that virtually any business or non-profit can afford to create professional-looking email programs."

"Until now email marketing technology has mostly been available to large corporations due to the high costs involved," said Greg Bestick, President of The Learning Company. "With iBuilder, VerticalResponse has created an affordable, effective service to manage email marketing campaigns for small to mid-size businesses.

Other investors include former XOOM VP Business Development Russell Hyzen, former VP, Advertising Sales Alicia Molnar, CSO, NBC Internet Vijay Vaidynathan, and Andojo I, LP.

The VerticalResponse Value Proposition

Businesses today are faced with costly, complex email marketing systems that require heavy front-end investments of time and money. As businesses are increasingly pressured to cut costs while growing their customer base, the demand for affordable email marketing systems is growing.

Introduced in May, iBuilder allows businesses of all sizes to quickly and affordably create and manage email marketing campaigns. With no upfront investment, businesses can sign-up for service on the Internet and create a campaign in minutes. For a fraction of the cost of traditional email programs, businesses purchase blocks of email credits based on their needs. There are no additional costs for technical support, list storage, hardware or software.

iBuilder's self-service model is a dramatic departure from the way that businesses traditionally manage their direct marketing programs. By simplifying the management process and getting rid of up-front costs, iBuilder makes email marketing affordable for all businesses.

About VerticalResponse

Based in San Francisco, VerticalResponse was founded by industry veterans who set out to revolutionize email marketing with affordable, easy-to-use products. IBuilder, the first product from VerticalResponse, helps companies of all sizes create and execute email campaigns as well as manage customer contact lists. Built on the self-service model, iBuilder is available directly over the Internet with no software to purchase, maintain and upgrade. Customers can register on the VerticalResponse site and purchase blocks of email credits online with their credit card.

For more information about VerticalResponse or iBuilder log onto www.VerticalResponse.com.

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